The insurtech industry has disrupted in recent years, with numerous startups launching new and innovative products and making it easier for consumers to buy insurance.
Similarly, Luko — Paris-based online home insurtech startup which offers products both for tenants and homeowners — has been growing at a fast pace utilising its unique blend of factors including technology, transparency, and social responsibility.
Now the French company has raised €50 million (£45.5 million approx.) in Series B funding round led by EQT Ventures. Further, existing investors Accel, Founders Fund, Speedinvest, and Orange Ventures also participated in the round, alongside angels with insurance and technology backgrounds, including Assaf Wand (CEO and co-founder of US unicorn Hippo Insurance).
As per the company press release, the new funding will be used to further invest in Luko’s proprietary technology, product development, and growing the team. Additionally, the B-Corp company also wants to expand its wings across Europe.
The co-founders Raphaël Vullierme (CEO) and Benoit Bourdel (CTO) created Luko with the ambition to have a positive impact on society. It aligns growth with a novel insurance model centred around its Giveback program: where 70% of Luko’s premiums are pooled with other customers’ and this pool is used to pay compensation. Further, the 30% go towards Luko’s management costs. At the end of the year, any premiums left in the pool that haven’t been used to refund claims are donated to charities chosen by policyholders.
Despite the COVID-19 crisis, Luko has grown more than 6x since its last funding round in November 2019 and has already scooped 100,000+ clients in nearly two years through the ethical model and proactive homecare.
Raphaël Vullierme, CEO and co-founder of Luko, explains: “Our long-term vision is to help build and democratise the sustainable homes of tomorrow, enabling everyone to live at home with peace-of-mind. Our transparent and communal model has already helped more than 100,000 French people and we are very proud today to work with EQT Ventures to accelerate this vision in Europe”.
Rania Belkahia, Deal Partner at EQT Ventures, who joins Luko’s board, added: “As EQT Ventures’ first investment since opening our French office, Luko is a flagship company in which we are proud to play a part.”
Currently, Luko has a team of 85 people who have joined the startup after gaining experience from leading organisations such as Axa, Airbnb, Facebook, Admiral, Société Générale, and Withings.
Luko’s home insurance products come with the likes of proprietary hardware technology & AI. They have also been focusing on products that have sensors to track water leakage and electrical consumption. Their latest product, dubbed as, Doctor House, is claimed by the company to be world-first video consultation service that provides expert knowledge on how to take care of one’s home and delay wear and tear.